New Delhi: If the Modi government implements four labor codes on wages, social security, industrial relations and occupation security, health and working conditions from tomorrow (July 1), there will be a lot of changes in terms of wage restructuring, PF and gratuity. can be. Component, working hours and earned leave as per media reports. If these labor codes are implemented, the new wage code will affect all the mentioned aspects. Since these are preliminary speculations now, nothing concrete should happen until the government officially notifies the rules.
23 states so far pre-published draft rules on these laws, while the Center has completed the process of finalizing the draft rules on these codes in February 2021. The Central Government had notified four labor codes, namely the Code on Wages, 2019 and Industrial, on August 8, 2019. Relations Code, 2020, Social Security Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29, 2020.
Since labor is a concurrent subject, the Center wants the states to implement it in one go, as mentioned earlier.
Salary reduction in hand after implementation of wage code
Government notification on Code on Pay 2019 may reduce take-home pay, while components such as PF and Gratuity can get up. This is based on the premise that the new wage code stipulates that the basic pay of the employee shall be at least 50 per cent of his net monthly CTC. Therefore, if this provision comes into force, it would mean that employees would not be able to receive more than 50 per cent of their net monthly salary as allowances.
PF increased after implementation of wage code
This also means that there will be a consequent increase in the employee’s gratuity and PF contribution. Therefore, while the take home pay of employees may be reduced, the gratuity and PF component may increase.
12 hour work week
Experts are also of the view that the new draft will affect the working hours of employees, with some media reports saying that employees may be allowed a four-day work week, but they may be allowed to work within those four days. Have to work 12 hours. The Ministry of Labor has clearly made it clear that 48 hours weekly work is required.
Big change in earned leave policy after the implementation of the new pay code
The biggest change can be seen in terms of earned leave. Government departments now have 30 holidays in a year, defense employees will get 60 holidays in 1 year. At present there are 240 to 300 holidays in different departments. Employees can avail these leave in cash only after 20 years of service.